Motivations to smooth net income over time include each of the following except:
A) Maximize bonuses and stock option values
B) Steady increase in earnings each year
C) Minimize overall taxes
D) Make it appear managers are doing better than they really are

Question

Quizplus · Accepted Answer

Minimizing overall taxes is not a motivation for smoothing net income; rather, it is often done to present a more stable financial performance or to meet certain financial targets.

Motivations to Smooth Net Income Over Time Include Each of the Following